The District could collect as much as $80 million more than anticipated in tax and fee revenueover the next two years, the city’s chief bean counter revealed this week, providing more evidence that D.C. is resistant to an economic slowdown.
The revenue estimate issued by Chief Financial Officer Natwar Gandhi means the District should have no trouble financing repairs needed for the charred Eastern Market, $25 million, and Georgetown Neighborhood Library, $15 million, city leaders said Wednesday.
“That should fully cover both of those projects and get them jump-started right away,” Mayor Adrian Fenty said.
The District is likely to end the current fiscal year with $4.85 billion in local revenues, $19.2 million more than a December projection, Gandhi said in a memo to Fenty and D.C. Council Chairman Vincent Gray. Fiscal 2008 revenues, meanwhile, are expected total roughly $5.16 billion.
In addition to the fire-related repairs, the extra revenue also could offset a $30 million budget hole caused by the mayor’s plan to fund procurement and personnel services out of agencies’ individual budgets. Fenty asked his agency directors to pinpoint excess revenue to fill the gap, and most of their proposed cuts involve leaving vacant staff positions unfilled, reducing contracts, and trimming supplies and out-of-town travel.
Others, however, appear more significant. For example, Fire and Emergency Medical Services proposed a $500,000 reduction for “protective gear,” though under the mayor’s spending plan the agency will still receive $2.1 million for new uniforms and equipment, $1.5 million more than the $762,206 it received this year.
Among other cuts:
» Eliminate security policy consultant in the Office of the Chief Technology Officer: $27,083
» Reduce training activities in the Department of Small and Local Business Development: $25,215
» Delay implementation of video-on-demand project in the Office of Zoning: $18,938
The projected revenue surpluses are largely due to higher-than-expected property and sales tax revenues. The District is benefiting now from the peak of the real estate boom, said Maryann Young, Gandhi’s spokeswoman.
